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# The price of a chip falls by approximately 67% every year

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Intern
Joined: 09 Mar 2013
Posts: 10
Location: India
Followers: 0

Kudos [?]: 11 [1] , given: 8

The price of a chip falls by approximately 67% every year [#permalink]  16 May 2013, 23:23
1
KUDOS
00:00

Difficulty:

(N/A)

Question Stats:

100% (02:24) correct 0% (00:00) wrong based on 2 sessions
The price of a chip falls by approximately 67% every year. In approximately how many years will the price of an $81 chip become$1?

I got his question in a document and it doesnt contain any options. Can you help me to resolve this.
Math Expert
Joined: 02 Sep 2009
Posts: 29679
Followers: 4889

Kudos [?]: 53122 [3] , given: 8043

Re: The price of a chip falls by approximately 67% every year [#permalink]  16 May 2013, 23:33
3
KUDOS
Expert's post
rohanchowdhary wrote:
The price of a chip falls by approximately 67% every year. In approximately how many years will the price of an $81 chip become$1?

I got his question in a document and it doesnt contain any options. Can you help me to resolve this.

67%=~2/3, which means that the price of a chip becomes 1/3 of the price in a year.

In 1 year the price will be 81*1/3=$27; In 2 year the price will be 27*1/3=$9;
In 3 year the price will be 9*1/3=$3; In 4 year the price will be 3*1/3=$1.

Hope it helps.
_________________
Intern
Joined: 09 Mar 2013
Posts: 10
Location: India
Followers: 0

Kudos [?]: 11 [0], given: 8

Re: The price of a chip falls by approximately 67% every year [#permalink]  16 May 2013, 23:52
+1 Kudos Brunel.

I never though in this way, this si a new way i can drive on to my result.
Intern
Joined: 04 May 2013
Posts: 19
Location: Azerbaijan
Concentration: Finance, General Management
GMAT 1: 710 Q49 V38
Followers: 0

Kudos [?]: 10 [2] , given: 39

Re: The price of a chip falls by approximately 67% every year [#permalink]  22 May 2013, 06:55
2
KUDOS
P0 = 81 (price of the chip at 0 moment)
P1 = 1/3 * P0 (67% price decrease means new price = 1/3 of the old price)
P(k+1) = P0 * (1/3)^k
81 * (1/3) ^ k = 1 leads to (1/3)^k = 1/81 = (1/3)^4 so k = 4
Re: The price of a chip falls by approximately 67% every year   [#permalink] 22 May 2013, 06:55
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